The novelty requirement for a design in Yemen to be valid is for it to have a new shape.
Located in the Arabian Peninsula in the south-west of the continent of Asia, the Republic of Yemen is the origin land of all Arabs in the Middle East. It was known to the Ancient Romans as Arabia Felix (Happy Arabia in Latin) because the land of Yemen was said to be beautiful and powerful. Agriculture and fishing, oil and gas, industry and manufacturing, services and tourism are major area to explore and have a sign of significant growth in Yemen. As a nation for ripe development Yemen offers cheap labor as compared to other developing nations of the world. The geographical location is an added advantage to Yemen as it is situated between the growing markets of Asia, Africa, and Europe rendering the country global business access.
Types of Business Entities in Yemen
For doing business in Yemen, one can choose from among the following business entities:
1. Limited Liability Company
A limited liability company (LLC) is a type of company formation where the liability of the members of the company is limited to the extent of their share in the capital. To form a limited liability company in Yemen, a local partner is not mandatory. The minimum requirement of shareholders is 2 and the maximum requirement is 25 to form an LLC in Yemen. Also, they are not allowed to engage in banking, insurance, and savings activities. The minimum share capital of a Limited liability company is YER 1 million (approximately US$5,000), which must be fully paid upon incorporation. A bank certificate is required for confirmation.
2. Public Shareholding Company
A public shareholding company is a legal business entity where the share capital is divided into equal share whose value is negotiable and transferrable. The minimum requirement of shareholders under this entity is five. The Ministry of Industry and Trade’s supervision of public shareholding companies is mandatory as per the procedures given in the law. The minimum capital requirement for a public shareholding company is YER 5 million. Also, the Board of Directors whose maximum limit is 11 must not be public employees.
3. Partnership Limited by Shares
It is a hybrid between a partnership and a company limited by liability. The capital and ownership is divided between shareholders who have limited liability and one or more partners who have full liability for the remainder of debts. In Yemen, to start a partnership limited by shares, a company needs to have at least 5 participating shareholders and one general partner, making a total of 6 founding members. A local partner requirement is not mandatory under this entity. The minimum share capital required is YER 3 million. And appointment of an external auditor is mandatory.
The other types of business entities permitted in Yemen are General Partnership, Limited Partnership, and Joint Venture.
Benefits of Company Formation in Yemen
- 100% foreign ownership
- Local sponsorship is not mandatory
- Yemen is not a rich country, but the presence of oil, gas and mineral deposits, the amount of development aid flowing into the country and the unequal distribution of wealth amongst the population mean that commercial opportunities exist
- The Yemeni government encourages foreign investment across all sectors and projects are exempted from profit tax for a period of 7 years, extendable up to 16 years
- Freedom of transfer of hard currency to and from Yemen
- No nationalization, reservation or seizure of investment projects
Who We Are
Business Setup Worldwide is platform to help you start a business in Yemen. Our services include company formation, registration of the business, accounting and bookkeeping, and company secretarial services. We offer unparalleled experience in incorporating your business in Yemen and rest of the world as well as managing regional office set up and licensing. Our team of dedicated experts can help you form a company in Yemen and provide you with all the necessary documents to open a bank account as well as a registered office in Yemen. Our specialists are available round-the-clock to counsel and guide you through the company formation process in Yemen.
At Business Setup Worldwide, we offer a broad range of services to help foreign investors establish their business in the region. Each country has its own set of challenges with regard to forming, developing, and sustaining a business. Investors must enter into these engagements with the support of a knowledgeable and experienced advisory team. Only someone with detailed knowledge of local and international corporate law will be able to set up an overseas business while avoiding the pitfalls that affect many new companies. And our team of professionals understands the local market, technical expertise, requirement and knowledge to start your business cost effectively and in appropriate time. They will ensure to effectively incorporate and integrate with your corporate business strategy.